Published at VetLikeMe

Confirming what have been and continue to be the realities across all business genres, regardless of age, maturities, size, or industry type, small business risks and failures are dramatically increasing. The latest small business market segment to be analyzed for increased risks and discontinuances, shows that one in six franchise SBA loans end in failure. New Study (May 14, 2015) “Risky Business Franchisees’ High and Rising Risk of SBA Loan Failure”,

However, it should be emphasized the failure figures are more massive. The study covered only a meager segment of the SBA and/or the franchise marketplace. The study only covered the failure rates of SBA loan write offs and then only after all borrower collateral has been liquidated. It only covered failed loans where SBA was directly tasked to honor their own guarantees – paying the lending banks and/or other providers.

The study did not cover nor the figures include how many franchise businesses failed with bank loans (SBA back or otherwise) being satisfied in due course as part of some winding down process. The study did not cover failed loans where was never even contacted, all guarantees paid or the bank simply taking fall for some portion.

The study did not cover and did not report how many franchise firms got caught up in “pot holes” or extended detours that resulted in forced sales, mergers, or other type ownership endings/changeovers (where no losses resulted to the bank or SBA). Nor does the study account for or reflect the serious personal and family losses in collateral or the overall economic impacts usually with far ranging other adverse impacts to the local community or its economy.

Recent reports in business publications have shown that for every 10 franchise
units opened in the last three years, almost nine have closed. Kate Taylor, “Does the Franchise Industry Have a Turnover Problem?” Entrepreneur, October 17, 2014. and Erik Sherman, “Here’s The New Bad News About Franchises,” October 15, 2014. -franchises.html

A recent poll of U.S. franchisees by, commissioned by Labor Federation Change to Win, found most franchisees running at a loss or breaking even, with small salaries, substantial indebtedness and low satisfaction levels. See SBA, “Helpful Hints for Navigating the National Guaranty Purchase Center.” Liquidation Expectation and Standards, pp. 3-4; _20120504.pdf  See, “Risky Business Franchisees’ High and Rising Risk of SBA Loan Failure” (p. 1)

Adding to mountains of statistical information, all clearly demonstrating that most entrepreneurs and business owners are lacking the requisite knowledge or know how for real business success, are the latest results for early stage/startups (regardless of type, government contractor, tech, etc.). Despite all the hoopla and media press, not to mention investor funding flowing in these directions in record amounts, the straight forward facts are as follows:

Failure rates are reaching record levels as never before. E.g. (23 Scary-but-Exciting Startup Failure Rate Statistics) (Jan 21, 2015); Nine out of every ten tech start ups will fail. E.g.,

There is now even a current post mortem “undertaker”, daily updated database
keeping track of national startup failures along with detailed, candidly disclosed reasons for those discontinuances from the owners themselves. See, (itself startup enterprise).

Obvious questions arise: Can any or all of these risks be alleviated, remedied, or prevented?     Close scrutiny within every study and underlying all of the statistics compiled to date, including the latest data from, repeatedly demonstrate that the answer is in the distinct affirmative. The prime causes for increased risk, costly, needless business detours, discontinuances, and failures continue to be rampant deficiencies in essential knowledge respecting best business practices and financial acumen.

Fortunately, there exists a directly accessible Internet platform, educational resource specifically structured and focused upon those very same knowledge pre requisites for business success – Ultimate Financing Guide, available and immediately downloadable for every entrepreneur and business owner (see note below).

Taking the lead respecting these very same issues is VetLikeMe (disabled veteran national publication for veterans) with this ongoing series on “Business Financing” – See, VetLikeMe (Part I) ; also at; (Business Financing Part II); also at (Business Financing Part III) ;;

This Series is about encouraging pathways and open discussions for business success based on “real world” experiences through knowledge empowerment. You are personally invited to join the discussion and get involved.
Investments in knowledge will always pay handsome dividends.

(Profile: Woodrow D. Wollesen, recognized national small business financing expert, former co-partner national law firm, seasoned entrepreneur/business executive, financial/business operations consultant, former graduate school of business professor, military veteran; 2006 US SBA Small Business Financing Champion, (8 years) Board Member, Executive Officer, Instructor with the prestigious National Women’s Business Center, Washington, DC; NWBC 2005 Man of the Year – see also more extensive background profile at; LinkedIn;

** The Ultimate Financing Guide deals with all the critical issues noted in this article in an objective and comprehensive fashion seeking to provide remedies for all stakeholders – all “win-win-win” outcomes. It provides for entrepreneurs and business owners for the first time a thorough, detailed roadmap respecting every facet in preparation, required records, the entire array of available financial options or tools, and how and when to acquire that financing in pragmatic, practical terms – how it works in the real world of business financing. The complete treatise and resource is FREE for all military veterans and their family members (There is a token $5 fee/contribution required for the maintenance of this Internet site which benefits all veterans. That ensures that in fact that “Veterans are helping Veterans to Succeed”.) Download and see for yourself.
For non veterans, a deep 50% discount off the standard retail cost is available for all client, members of this project’s established supporting partners .